Reuters today reported that a Connecticut man who worked for New England Cash Dispensing Systems Inc. pleaded guilty to conspiracy to commit bank fraud for his role in stealing millions of dollars from his former company.
According to the U.S. Attorney for the District of Connecticut, Mirza Baig, 48, of Marlborough, Conn., worked for the Branford, Conn.-based company where he and others, over several years, engaged in a conspiracy to defraud Rhode Island-based Domestic Bank of cash by diverting the money through NECDS-controlled ATMs.
Prosecutors said Baig and the others allegedly covered up the scam by misleading the bank about the accounting process, according to the article.
In March 2000, NECDS signed an agreement with Domestic Bank, under which the company would provide ATM services and the bank would supply some of the cash for the ATMs.
Baig admitted that he personally stole $2 million, and Domestic Bank ultimately lost $4.8 million in funds that it supplied to NECDS, according to prosecutors.
Baig faces up to 30 years in prison and has agreed to pay $1 million before his sentencing, which is set for March 2012.
NECDS operated ATMs at convenience stores and gas stations throughout the Northeast.
Joseph Sarlo, former chief executive of NECDS, John DeMilo, former general manager and Gary Vestuti, an NECDS employee, have all pleaded guilty to similar charges and await sentencing.
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